Datadog stock surged 51% in 2026, outpacing Nvidia's 21% gain as businesses rely on its monitoring tools for AI systems. The company hit $1 billion in first-quarter revenue and introduced new GPU monitoring features to manage AI workloads effectively.
Memory and storage leaders are reaping massive rewards, with Sandisk, Micron Technology, and Broadcom posting profit margins above 70%. Sandisk alone gained 526% this year after spinning off from Western Digital, while the memory ETF Roundhill raised $1 billion in a single day. Industry analysts note these high margins may narrow as supply eventually catches up with demand.
Global AI chip investment reached $297 billion in 2024, driven by enterprise spending that nearly doubled year over year. While Nvidia expands its stake in CoreWeave and Coherent to control more of the supply chain, AMD is positioned as a top growth stock with a $120 price target. Conversely, investors are advised to avoid BigBear.ai and C3.ai due to declining revenues and shrinking margins.
Anthropic secured a $30 billion funding round at a $900 billion valuation, led by Dragoneer and Sequoia Capital. Meanwhile, Google plans to hire 500 engineers for AI support roles focusing on MLOps and compliance for Gemini and Vertex AI. New tools like ChatGPT Memory Sources now allow users to control what the AI remembers, while finance teams use integrated ChatGPT to audit Excel models.
Key Takeaways
["Datadog stock rose 51% in 2026, surpassing Nvidia's 21% gain with $1 billion in Q1 revenue.", 'Sandisk, Micron Technology, and Broadcom achieved record profit margins exceeding 70% due to AI component demand.', 'Sandisk stock gained 526% this year, leading the Nasdaq-100 index after spinning off from Western Digital.', 'The Roundhill Memory ETF raised $1 billion in one day and $5 billion in its first month.', 'Global AI chip investment reached $297 billion in 2024 as enterprise spending nearly doubled.', 'Anthropic secured $30 billion in funding at a $900 billion valuation led by Dragoneer and Sequoia Capital.', 'Nvidia increased stakes in CoreWeave and Coherent to strengthen its position in the AI supply chain.', 'AMD is rated a top stock for AI growth with a $120 price target raised by Bank of America.', 'Investors should avoid BigBear.ai and C3.ai due to declining revenues and financial struggles.', 'Google plans to hire 500 engineers for AI support roles focusing on MLOps and compliance.']Datadog Stock Surges Past Nvidia in AI Boom
Datadog stock has risen 51% in 2026, outperforming Nvidia which gained 21%. The company provides tools to monitor AI systems, making it essential for businesses using artificial intelligence. In the first quarter, Datadog revenue reached $1 billion, marking its fastest growth in three years. The company also launched new GPU monitoring features to help companies manage their AI workloads.
Three AI Infrastructure Stocks Show High Profit Margins
Sandisk, Micron Technology, and Broadcom are seeing record profit margins above 70% due to high demand for AI components. These companies supply memory, storage, and processors that are critical for AI data centers. Leading tech companies plan to spend $750 billion on AI infrastructure this year alone. While these high margins are impressive, they may eventually fall as supply catches up with demand.
Sandisk Predicted to Lead Nasdaq Gains by Year End
Sandisk stock has gained 526% this year, making it the top performer in the Nasdaq-100 index. The company spun off from Western Digital in February 2025 and has seen massive growth in data center revenue. Its earnings per share improved significantly to $23.03 in the third quarter of 2026. Other storage companies like Intel and Seagate are also benefiting from the AI infrastructure boom.
Investors Should Avoid BigBear.ai and C3.ai Stocks
BigBear.ai and C3.ai are two AI software stocks that investors should avoid due to declining relevance and financial struggles. BigBear.ai revenue fell from $146 million to $128 million between 2021 and 2025. C3.ai faces revenue drops and shrinking margins as it competes with similar companies. In contrast, Broadcom is recommended as a buy because it remains a top choice for AI chip investments.
New AI Memory ETF Raises $1 Billion Quickly
The Roundhill Memory ETF raised $1 billion in a single day and attracted $5 billion in its first month. The fund holds shares in Western Digital, Sandisk, and Micron Technology, which are leaders in AI memory and storage. Western Digital saw its revenue jump 45% while Sandisk experienced staggering returns over the past year. Investors should note that the memory industry is cyclical and subject to market fluctuations.
Origin Lab Raises $8 Million for Video Game AI Data
Origin Lab raised $8 million in seed funding to create training data for AI systems from video games. The company partners with over 20 game publishers to provide legally cleared datasets containing motion and physics data. Investors include Lightspeed Venture Partners and angel investors like Twitch co-founder Kevin Lin. This data helps AI models understand complex interactive environments better than static text.
Origin Lab Secures $8 Million to Build AI Game Data Platform
Origin Lab received $8 million in seed funding to expand its platform for converting video game worlds into AI training data. The round was led by Lightspeed Venture Partners with participation from SV Angel and other investors. The company works directly with publishers to create rights-cleared datasets for frontier AI labs. This funding will help grow their engineering teams and deepen partnerships with game studios.
AI Chip Investment Reaches $297 Billion Globally
Global funding for AI technology reached approximately $297 billion in 2024 as companies move beyond pilot programs. Enterprise spending on AI has nearly doubled year over year with the U.S. leading private investments. Investors are now focusing on cutting-edge technologies like quantum computing and neuromorphic processing. Large language models and agentic AI are driving the shift toward production-scale adoption.
AI Chip Sector Sees Record Investment Momentum
The AI chip sector is experiencing strong investment momentum with global funding reaching $297 billion in 2024. Enterprise spending has nearly doubled as companies deploy AI beyond initial pilot programs. The U.S. maintains a significant lead in private AI investments compared to other regions. Challenges like power shortages and supply chain constraints remain despite the growth in large language models and agentic AI.
Anthropic Secures $30 Billion Funding at $900 Billion Valuation
Anthropic agreed to a $30 billion funding deal with a valuation of $900 billion. The investment was led by Dragoneer, Greenoaks, Sequoia Capital, and Altimeter Capital. This massive funding round highlights the continued investor confidence in advanced AI companies. The deal underscores the growing importance of AI labs in the technology sector.
ChatGPT Helps Finance Teams Audit Excel Models
ChatGPT can now be integrated with Excel to help finance teams audit complex financial models more efficiently. The AI tool checks formulas, data integrity, and identifies errors that manual reviews might miss. It creates detailed issue logs and suggests fixes to improve model accuracy. This technology allows finance professionals to focus on strategic thinking rather than tedious data verification.
AMD Positioned as Top Stock for AI Growth
Advanced Micro Devices is considered one of the best stocks to profit from the AI trend. Bank of America raised its price target to $120 on May 13, 2026, citing strong fundamentals. The company's ROCm software ecosystem provides an open platform for developers to build AI applications. Its Ryzen and EPYC processors are well-positioned to meet growing demand for AI hardware.
Nvidia Increases Stakes in CoreWeave and Coherent
Nvidia disclosed new investments in CoreWeave and Coherent to strengthen its position in the AI supply chain. The company now owns 47.2 million shares of CoreWeave, a fast-growing AI cloud provider. Nvidia also holds 7.8 million shares of Coherent, which supplies materials for chips and optical parts. These moves show Nvidia's strategy to control more of the AI infrastructure beyond just selling chips.
AI Stocks Drop as Inflation Worries Hit Global Markets
Sinking AI stocks caused Wall Street to fall below record highs amid global inflation concerns. The decline affected markets worldwide including the New York Stock Exchange and South Korean exchanges. Investors are reacting to economic uncertainty and potential slowdowns in technology spending. This market drop highlights the sensitivity of AI stocks to broader economic conditions.
Google Plans to Hire 500 Engineers for AI Support
Google announced plans to hire over 500 engineers for AI customer support roles. The new positions will focus on MLOps and compliance expertise to help enterprises adopt Gemini and Vertex AI. This expansion shows Google's commitment to supporting businesses as they integrate AI tools into their operations. The hiring reflects the growing demand for specialized AI implementation skills.
New Tool Lets Users Control ChatGPT Memory
ChatGPT Memory Sources is a new feature that lets users see and manage what the AI remembers about them. The tool shows which past conversations shaped any response, allowing users to delete outdated information instantly. This transparency helps users maintain control over their personalization settings in real time. The feature also ensures privacy by hiding memory sources from shared chats.
Sources
- Meet the AI Stock Running Rings Around Nvidia in 2026. It Could Just Be Getting Started
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- This AI Memory ETF Raised $1 Billion in One Day. Here Are 3 Stocks in Its Holdings You Should Consider Buying
- Origin Lab Raises $8M to Turn Video Game Worlds Into AI Training Data
- Origin Lab Raises $8M in Seed Round Funding to Turn Video Game Worlds Into AI Training Data
- This Week In AI Chips - AI Investment Momentum Driven By Cutting-Edge Technological Advancements
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- Anthropic agrees terms of $30bn funding deal at $900bn valuation
- ChatGPT Aids Excel Finance Model Audits
- Is Advanced Micro Devices (AMD) the Best Stock To Profit from AI?
- Nvidia Discloses Stakes in AI Stocks CoreWeave (CRWV) and Coherent (COHR)
- Sinking AI stocks knock Wall Street off its records as markets drop worldwide on inflation worries
- Google to hire hundreds of engineers for AI customer support
- AI Tool of the Week: see and control what ChatGPT remembers about you
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